2/28/2011

Michael Moore  CIQ&safety_mode=true&persist_safety_mod e=1 CIQ&safety_mode=true&persist_safety_mod e=1

Intro to the Case  I n 2008 Nikes profits were 12 billion dollars  Company was long under scrutiny for labor practices of companies in its supple chain  Mid 1990’s on top of sweatshop criticism, Nike was criticized for contracting companies that employed children  Make strides to change, many say its not enough

Company Background -Started in Oregon in As of 2004, employed 23,000 people around the globe -Nike supply chain includes more than 660,000 contract manufacturing workers in more than 900 factories in more than 50 countries, in the US -COC disturbed to employees since 1992  CSR Mission Statement  “Nike’s Corporate Responsibility mission is to be an innovative and inspirational corporate citizen in a world where our company participates. We seek to protect and enhance the Nike brand through responsible business practices that contribute to profitable an sustainable growth.”

Facts to the Case  Nike has always outsourced the manufacture of it products to other countries  Company doesn’t own factories (suppliers)  Soccer balls from Pakistan in 95  Life Article in 96  Picture  Portrayed workers as unhappy, working long hours, making just enough money for the family to survive  Nike spokeswoman says child labor is “an age-old practice”  Leads to more boycotts, and more bad publicly for Nike

Below: Young Boy, hunched over, stitching together the leather piece of a soccer ball Life Article Picture

Resolution  Nike “blew it”  Built “stitching centers”  Must be 18 to work in these centers  Only purchased soccer balls that were stitched in the “stitching centers”  ‘98 new rule that subcontractors couldn’t use anyone under 18 to work in footwear manufacturing, or anyone under 16 to work in apparel or equipment manufacturing  Higher than the ILO who sets the labor age at 15

2004 Nike Child Rule  If company found using child labor, it must pull children out of work while continuing to pay their wages, send them to school, and agree to hire them when they have reached the legal age  External Organization help monitor this policy  Successful in stopping child labor in Pakistan

Questions for Reflection  Analyze Nike’s actions. How well do you think the company handled the issue? Do you think it should have done anything differently?  What role do you think the media and advocacy groups played in getting Nike to change its policies?  Do you think that Nike should raise workers’ wage even if it means raising the price of a pair of shoes? Would you be willing to pay more for your shoes if you knew the people who made them were earning enough to support their families?